MMPF-005 International Financial Management Solved Question Paper June 2023

MMPF-005 International Financial Management Solved Question Paper June 2023

International Financial Management
Course Code: MMPF-005

1. Explain the various forms of exchange rate
arrangements. Describe the features of the
fixed parity system and discuss the causes
behind its collapse.
2. What are the various forms of international
financial flows ? Explain how they are recorded
in balance of payment statement.
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3. What is Interest Rate Parity (IRP) relationship
? How can this relationship be used as an
arbitrage opportunity ?
4. What is a Currency Swap ? Describe fixed to
fixed rate currency swap with the help of an
example.
5. Describe in brief the various types of exchange
rate exposures and discuss the techniques of
managing translation and economic exposure.
6. What do you understand by External
Commercial Borrowings (ECBs) ? Discuss the
terms and conditions associated with raising of
ECBs through automatic route.
7. Describe the basic points considered for
evaluating foreign projects. Discuss the process
of risk analysis in international investment
decisions.
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8. How is working capital management of
Multinational Firms (MNCs) different from
that of domestic firms ? Discuss the
considerations involved in formulating MNC
working capital management policy